Horizon
Capital & Consulting
CAPITAL
Investments for the Long Run
Horizon is constantly looking for investment opportunities in both Capital Markets and directly in the Real Economy. We believe in decisions made based on real data, deep analysis and scenario evaluation.
We invest alone and with partners. We believe in trust-bases partnerships. If you have an idea you believe in and you are looking for a long-term hands-on partner, please contact us.
Where do we invest ?
We consider ourselves "value investors". We look for assets which have solid business and are undervalued versus their reference markets and peers, usually because of idiosyncratic factors and one-off events, and go deep into the root causes, creating investment thesis looking for outsized returns in a 1-3 years time horizon. We prefer liquid investments where we can exit quickly, should our thesis not be confirmed
We are not constrained by asset class or geography, achieving extraordinary diversification even with a small number of high-conviction investments.
BYD Case Study
The global battery market is experiencing rapid growth, fueled by increasing demand for electric vehicles (EVs), renewable energy storage, and portable electronic devices. As of 2024, lithium-ion batteries dominate the EV market, with technological advancements focusing on improving energy density, cost efficiency, and safety. China’s leadership in battery production is evident, as it controls significant portions of raw material supply and battery manufacturing capabilities. Major players in the battery market include CATL, LG Energy Solution, and Panasonic, which hold significant market shares alongside BYD. BYD itself is a prominent player, holding around 19% of the global EV battery market, with a notable focus on lithium iron phosphate (LFP) batteries due to their affordability and safety advantages  .
BYD stands out as a vertically integrated entity that not only manufactures batteries but also produces EVs and components in-house. This integration enables cost control and efficiency that many competitors cannot match. Having long been a smartphone producer, it also has expertise in software and infotainment integration, which is increasingly attractive to consumers. BYD has a robust capital structure, with a strong cash position and low net debt, offering a solid foundation for growth and positioning well to weather a market which may be oversupplied. Despite being a low-cost producer, BYD has maintained one of the highest earnings margins in the industry, trailing only luxury auto manufacturers.
BYD’s price competitiveness is a crucial advantage, allowing it to offer EVs at a lower price point compared to rivals like Tesla, while also enjoying government support in China for EV sales and exports. The company’s international expansion efforts are gaining momentum, with manufacturing facilities and distribution networks being established in regions like Thailand, Brazil, and Europe, which should shield it from increasing protectionist measures. This positions BYD as a strong contender for capturing emerging EV markets worldwide. Overall, BYD’s integrated operations, financial stability, and growth potential in international markets make it a compelling investment in the rapidly evolving battery and EV industries.
We have achieved over 50% return on invested capital in BYD.